Plus500 CFD Trading: A Must-Have Guide for Traders 2021!

Oct 23, 2021CFD Trading0 comments

CFD trading is a well-known financial derivative product that enables traders to speculate price movement in the short term. 

One of the benefits of trading CFD is that you can trade on margin. Plus, you also have the leverage of trading CFD to hedge your current investment portfolio. By trading CFD, you would not have to buy or sell the underlying assets. Instead, you can buy or sell multiple units of a specific instrument depending on the price movement.

Do you trade CFD on Plus500?

When trading CFD on a broker like Plus 500 requires you to have enough understanding of the broker’s working principle, which is why we’ll be delving into understanding Plus 500.

Part 1: What is Plus500?

Plus500 CFD offers online trading on stocks and Forex. 

  • It is a multi-regulated broker with a wide variety of more than 2000 Forex and CFD instruments for trading. 
  • They provide a user-friendly trading platform, tight spreads with a commission fee trading. 
  • It has several options for funding your account and a highly rated customer support service.

Plus500 established in 2008 in Israel, is being listed on the London Stock Exchange and regulated by many top-tiers like the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA), UK. And because of the above-listed attribute, and under the operation of a stock exchange, several traders consider it secure. 

Plus500 provides excellent customer support. Plus500 enables traders to contact customer service using different means like WhatsApp, Live chat, and even email except for calls. But there is hardly any phone support available now and service option through WhatsApp. Instead, there is another integrated option named the ‘Contact Us page for inquiries with Plus500. Live chat and email support are reliable. Plus500 has very responsive customer service that is available 24/7.

At Plus500 traders can trade CFD Forex, ETF, Commodities, Stock index, and crypto except for real stocks and ETFs. Its spreads include EUR/USD- 0.0009, Natural Gas- 0.005, Gold XAU- 0.51, Oil CL- 0.04, EUR/GBP- 0.00074, Palladium- 12.6, China A50- 15.28, and Platinum- 3. You can check more spread on multiple instruments on Plus500’s official websites.

The margin of Plus500 is on the current leverage provided on each instrument. On Forex, for maximum major currency pairs, the initial margin is 0.33%.

Plus500 requires a deposit of $100 and has a withdrawal service that is very simple and free of charges via bank transfers, e-wallets like Skrill, and debit/credit cards.

Leverage on this platform includes EUR/USD- 1:300, Natural Gas- 1:150, Gold XAU- 1:150, Oil CL- 1:100, EUR/GBP- 1:300, Palladium- 1:150, China A50- 1:150, and Platinum- 1:150. Basically, on major Forex currency pairs, the leverage remains 1:300. Shares’ leverage depends on the utilization through Contracts For Difference. On Commodities, it is a maximum of 300:1. On ETFs, maximum leverage is 1:100

WebTrader is a proprietary platform of Plus500 that offers an outstanding trading experience that is suitable and accessible on many devices. Traders provide a great trading experience with it. This platform allows traders to access multiple devices and systems.

Plus500 platform has a record of having around 100,574 new clients.

Country of regulation includes UK, Cyprus, Singapore, Australia, South Africa, Israel, New Zealand, Seychelles.

It is a Market marker broker with no withdrawal fee. The minimum deposit requirement of Plus500 is $100 for credit/debit cards/electronic wallets. Plus500 offers up to 16 supported currencies, including a demo account. For bank transfers, the deposit requirement is $500. The deposit and withdrawal services of Plus500 are great. 

Traded Instruments are CFDs, ETFs, Gold, Stocks, Crypto, Commodities, Oil, Options, Metals, Indices.

Plus500 CFD Trading

Pros:

  • User-friendly platform
  • Easy account opening process.
  • 24/7 responsive customer support

Cons:

  • Average CFD fees with limited product
  • Adequate tools for research

Part 2: All about plus500 CFD trading

A “contract for difference,” or contract for difference for short, is a tradable product that follows the price of the global financial market. CFDs allow you to directly access the underlying asset, such as gold, UK 100, or EUR/USD, without owning the underlying asset. You will gain or suffer losses due to changes in the price of the underlying asset.

In both cases of buying and selling, you do not own the underlying asset.

The benefits/ features of  CFD trading on Plus 500 includes:

  • 1. Getting leverage-you can expand your trading scale by using fewer funds. Up to 1:30 means that for only £100, you can get a capital effect of £3,000. You can also go short-opening a sell position is as easy as opening a buy position.
  • 2. Low minimum deposit requirements- relatively little capital is required to start trading stocks, foreign exchange, commodities, and more financial instruments.

The goal of CFD trading is to speculate on the price changes of the underlying asset. Your profit or loss is dependent on price movement and the position size.

To start trading, you need to know the following

  • 1. How to open a position

To open a position, you need to log in or sign in to Plus500. Now click on the “Trade” tab and search for instruments you want to trade. Now click on Buy/Sell, select the amount you wish to trade, and open a trade.

  • 2. How to view, edit or close a trade?

Click the “Open Positions” tab to view your trade. Then edit your trade by clicking on the “Edit Button” this will take you to where you can update your trade and add stop orders.

By clicking ‘Close,’ you will be able to close your position.

  • 3. Manage your risk with stop orders

It is free of charge to close a position either at profit or loss. Risk management tools like “stops” and “limits” can be added to trade while opening a new position. This tool protects your profit during “Close at a profit” and minimizes your loss in “Close at a loss.”

Part 3: A Detailed Comparison Chart of Top 5 CFD Trading Platforms

Here’s a detailed comparison chart of the top 5 CFD trading platforms in various categories

Stock Trading Platforms

Overall Rating Account opening Trading platform Fees or Charges Instruments or commodities Regulators Leverage Education
CMC 4.3 1-3 days Web-based, Mobile and Desktop No fee Forex, CFD, Stocks, cryptocurrency, copy-trading, spread betting ASIC, IIROC, MAS, FCA, FMA, CFTC/NFA 1:500 Demo account, educational video and articles, webinar
IG 4.8 1-3 days MT4, proprietary, Desktop, Web, copy-trading Average Forex, CFD, Forex pair, stocks, cryptocurrency, copy-trading ASIC, FCA, BMA, FSCA, MAS, NFA, CYSEC 1:500 Demo account, online courses, webinar
eToro 3.8 1 day Mobile trading, one-click trading Low Forex, CFD, Indices, Gold and Silver, cryptocurrency, Stocks, Metals, ETF, Commodities FCA, CYSEC, MiFID, ASIC 1: 400 Demo account, intro guide
Plus500 4.0 1 day Browser-based, Trailing stop, pending order Average Forex, CFD, Indices, Spread betting, Gold and Silver, Cryptocurrency, Stocks, Oil, Metal, ETF, Energies, Options ASIC, FSCA, MAS, CYSEC, ISA, FSA 1:300 Demo account, educational articles, tutorial videos
Oanda 3.7 1-3 days Pending order   Forex, CFD, Gold and Silver CFTC/NFA, FCA, FSA, FSC, SIBA, MFSA 1:50 Webinar, Demo account, educational video

Part 4: Some FAQs

1 – Is Plus500 a CFD?

Plus500 is a global CFD broker listed on London Stock Exchange and founded in 2008. It is majorly a secure broker because top financial institutions regulate it and list it on a stock exchange.

2 – Is Plus500 good for day trading?

Plus500 is good for day trading if you understand perfectly how the platform works.

3 – Can you lose money on Plus500?

Like every platform, if you don’t have a trading strategy, you tend to fail. And not all your market speculation is profitable. We recommend that you use negative balance protection. Using negative balance protection ensures that your losses are always limited to the current balance in your account.

Conclusion

Finally, you can now move on and trade using this simple guide on Plus500 CFD trading. However, first make sure you have a clear understanding of the Plus500 CFD review before trading to avoid losing. So, re-read this blog and immediately go ahead and make money trading CFD.

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